- Publication Date
- 2024-03-04
The Solicitors Regulation Authority (SRA) conducted a forensic investigation into a law firm, which raised concerns regarding compliance with the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, as well as the Solicitors Accounts Rules 2011. The firm ceased trading in December 2022. A significant figure at the firm was a partner and owner, responsible for compliance at both the firm and file levels.
The investigation revealed seven conveyancing matters that HM Land Registry initially refused to register due to identification and verification document concerns. This substantial non-compliance led to failures in meeting requirements for client identity verification. Additionally, the investigation uncovered two transactions totaling £34,000, unrelated to any underlying legal dealing. The lawyer in question lacked awareness of the regulatory notice against using client accounts as banking facilities, a rule in effect since 2004.
The findings highlighted failures in customer due diligence in several conveyancing matters between November 2018 and March 2020, in breach of regulatory obligations. Moreover, between November 2018 and February 2020, these breaches were continuous, indicating systemic non-compliance with pertinent regulations.